The U.S. Department of Defense is set to cancel a major contract with Leidos Holdings (LDOS, Financial) and Oracle (ORCL) as part of a cost-cutting initiative. The contract, involving Oracle's cloud-based human resources software to oversee 900,000 civilian employees, is significantly over budget and behind schedule. Originally conceived to modernize the Pentagon’s HR systems, the project has exceeded expenses by 780% and is six years delayed. Following this decision, shares of Oracle and Leidos fell by 2% and 3.5% respectively.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 13 analysts, the average target price for Leidos Holdings Inc (LDOS, Financial) is $170.32 with a high estimate of $220.00 and a low estimate of $144.00. The average target implies an upside of 28.25% from the current price of $132.80. More detailed estimate data can be found on the Leidos Holdings Inc (LDOS) Forecast page.
Based on the consensus recommendation from 18 brokerage firms, Leidos Holdings Inc's (LDOS, Financial) average brokerage recommendation is currently 2.1, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Leidos Holdings Inc (LDOS, Financial) in one year is $131.88, suggesting a downside of 0.69% from the current price of $132.8. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Leidos Holdings Inc (LDOS) Summary page.
